A statue stands at the Cabrillo National Monument across the bay from downtown San Diego on Mar. 20, 2008.
San Diego, California – On Tuesday, San Diego Mayor Todd Gloria unveiled a $6.04 billion draft budget for Fiscal Year 2026, outlining a plan to close a significant budget gap through a mix of new revenue, fee increases, and department reductions—while still boosting funding for public safety and homelessness services.
The proposed budget, which is $223.1 million higher than the previous fiscal year, relies on $157 million in new revenue. That includes higher parking meter rates, increased parking citation penalties, new service fees, and a controversial new solid waste collection fee awaiting City Council approval in June. It also anticipates revenue from a disputed increase to the city’s hotel tax, Measure C, which remains tied up in court.
Despite the added revenue, the budget includes major cuts to city services. All public libraries would close on Sundays and Mondays, with a popular tutoring program reduced from 18 locations to 10. Hours at recreation centers would be slashed from 60 to 40 per week, and some restrooms in city parks would close seasonally.
Mayor Gloria defended the proposal as a necessary response to a challenging fiscal landscape.
“With the economic data we have now, we’ve made strategic decisions to minimize service-level reductions, avoid mass layoffs of the workers who keep our city operating, and invest in what matters most to San Diegans,” Gloria said.
The plan proposes eliminating 393 positions, 160 of which are currently filled, with many employees expected to be reassigned. Overall, it includes $175.9 million in reductions across all departments.
Still, the budget boosts funding for public safety, including $29.3 million in new funding for the San Diego Police Department and $24 million for the Fire-Rescue Department.
“We are proud that public safety continues to remain of the highest importance to Mayor Gloria’s administration,” said Fire Chief Robert Logan II.
Police Chief Scott Wahl added that the budget “reflects the difficult but necessary choices required to meet this unprecedented moment without compromising the key services our communities rely on.”
Other major spending proposals include:
- $83.1 million for street maintenance and resurfacing, covering nearly 390 lane miles
- $48.8 million for stormwater upgrades, including $39.1 million for emergency projects
- $11 million in projected revenue from new parking fees in Balboa Park
- Renegotiation of the city’s animal services contract to lower costs
A significant portion of the budget—$105.3 million—will be directed toward homelessness services. That includes $71.1 million from the city’s General Fund, $25.7 million from the state, and $8.5 million in additional grants. However, the city plans to back out of operating the Rosecrans bridge shelter, citing upcoming demolition and utility shutdowns by the county. County Supervisor Terra Lawson-Remer urged philanthropic support to keep the shelter running, estimating $2 million in new infrastructure costs would be needed.
In December, Gloria warned of a $258 million shortfall due to slowing growth in property, hotel, and sales tax revenues. That gap has since widened due to a drop in franchise fees and rising pension obligations.
The mayor’s budget comes just months after San Diego voters rejected a proposed 1% sales tax increase that would have raised an estimated $400 million. The city’s current sales tax rate of 7.75% remains one of the lowest in the state.
“This is a good-faith attempt to respond to the concerns shared amongst our council colleagues,” said Councilman Stephen Whitburn. “As elected officials, we are relied upon not only to maintain the city’s duty to serve the public but also to concurrently protect the jobs of the hard-working members of the city’s workforce.”
Mayor Gloria will formally present the draft budget to the City Council on Monday. A series of public budget hearings will take place May 5–9, followed by a revised budget proposal on May 14.
